The day-to-day of running a healthcare business is complex. Where most companies have a central goal to be profitable, healthcare businesses weigh several goals at once.
Profitability and growth sit on one side of the scale, and quality patient care and efficiency on the other. Making a spontaneous move can drastically impact any of these and change the balance and stability of your entire business.
For instance, you might decide to expand into a new service or area, but you may end up in legal trouble if you prioritize profits without patient care and staffing requirements.
Healthcare market research is a key business tool to help you make better decisions with reliable success. With deeper insights into your industry, you can understand patients, opportunities, and competitors and build a winning strategy with patients at the center.
What is healthcare market research?
Healthcare market research is finding, interpreting, and using data and trends to understand the industry and its issues and opportunities. Performing research guides your business decisions and helps:
- Attract patients and referral sources
- Enhance services
- Discover new products or services
- Find new ways to use technology
- Plan for growth
Ultimately, market research identifies patient needs and details that disrupt or encourage healthcare delivery, leading to better patient care, business stability, and growth.
Importance of research for your healthcare business
Healthcare market research gives you specific insight into the business landscape, including potential patients and revenue, ways to separate from your competitors, and opportunities for technology and innovation.
Measures your patient pool
The patient pool, or market size, tells you the number of patients available for your services or products. Understanding this number allows you to estimate how much income you can generate, the likely expenses, and your profit potential. It also helps you understand your patients’ needs and where you can specialize.
Shows market dynamics
The healthcare industry is continually under strain with rising costs, worker shortages, and payment changes. Healthcare market research unveils trends that could affect your profits or ability to scale.
An aging population is one example of a market change that presents an expansion opportunity for SNFs. On the other hand, the nursing and healthcare worker shortages mixed with changes to staffing minimums is a major hurdle to navigate.
Maps your competitors and opportunities
Research also outlines your competitors, their strengths and weaknesses, and where you stand. You can discover your unique advantages, what specialties to focus on, how to differentiate your business, and gaps in the market.
Competitor information also shows opportunities. For example, you might find other long-term care centers are growing quickly in one location or are using new technology that speeds up hiring. Performing research helps you spot these trends and openings early on, giving you an edge in your business.
How to do healthcare market research
There are several research techniques, and choosing one depends on your goals. But the process follows a few simple steps, from setting goals and gathering data to reviewing market and competitor details and building a strategy.
The first step of market research is to define your goal. Consider a few points to give yourself direction, such as:
- What market region will you study?
- Who is your patient?
- Do you need data on new services or existing ones?
Use this information to decide the purpose of your research, whether to learn how you measure up to your competitors, identify new services, or scale your company.
Once you set your goals, identify where the data will come from and collect information. Research methods might include questionnaires or focus groups you run firsthand or from surveys, polls, interviews, or published studies. Patient and disease incidence data from health organizations or the government are excellent tools for healthcare market research.
Next, identify your market details. Learn who your patients are, how many are within your defined market, whether global, national, or regional, and their key demographics.
Assess the following:
- Unique demographics of your target patients, like age and if they experience any chronic illness
- How many patients need or want your services
- Patient income range
- Patient health behaviors
- Patient preferences
- Predicted demand and growth within your defined region
- The likelihood patients will use your services and how often
These data points are valuable insights into who will use your services and what they need, allowing you to create or expand new services or treatments.
Then, analyze your competition and the overall market landscape to help you understand where you already are or how you can be different and keep tabs on changes in the industry. Start with a few key points, such as:
- Who your competition is
- Location and how far they reach
- Number of similar services available
- Price of these options
- Specialty or niche services available
- Annual revenue
- Year-over-year growth
Use this information to understand your competitors’ market share, market gaps, and ways to improve healthcare delivery or access in your region. It also highlights how to focus and position your business to maximize advertising.
The final step is to combine the data and generate metrics that follow your research goals. Organize the data and summarize it to provide a clear picture of your industry and what you’re up against.
Then, use this information to create a strategy, whether to scale your healthcare business, enhance your marketing and advertising, or improve your overall performance. After research, you might find a demand for specialty services and a gap in providers. You can confidently expand into this area with less risk and a higher chance of success.
Top research resources
Running and interpreting research can be overwhelming, but chances are high that someone has some quality data you can leverage. Many free databases have demographics, population data, disease incidence data, market trends, and business statistics.
If you’re unsure where to start, check out:
► Population data
► Income statistics
► General business statistics
► Industry statistics
► Patient data
Discover growth tips from healthcare CFOs
Market research is vital for healthcare business growth, offering high-value insight into potential patients, competitors, and opportunities. These insights make it easier to navigate a complicated industry under pressure while driving profits and boosting patient care.
Growth can feel daunting, but it’s not impossible, and many healthcare businesses have successfully scaled into profitable organizations. We’ve talked to our clients and healthcare CFOs and pooled their best research techniques and tips for expansion. Download our ebook and discover tried-and-true strategies and expert advice for success.
